THE Chancellor George Osborne has backed calls by Uttoxeter’s MP for banks to do more to support new businesses and manufacturers.
Tory backbencher Andrew Griffiths asked Mr Osborne in the House of Commons what could be done to encourage lending under the national loan guarantee scheme, which sees Government money used to ensure bank lending.
Mr Griffiths asked: “Does the Chancellor agree that the national loan guarantee scheme has massive potential to help small and medium sized enterprises grow?
“Does he also share my view, however, that we need a more enlightened approach from the banks in lending for growth, particularly to support start-ups, exporters and manufacturing?”
Mr Osborne, in response, claimed the Government was acting to make Britain a good country from which to run a business.
He claimed measures to guarantee lending to small businesses would be up and running by the Budget later this month.
The Chancellor said: “We have introduced various tax changes, including our seed capital scheme, creating the most tax-advantaged startup environment almost anywhere in the westernworld.
“Indeed, it is more attractive than that in the United States. On credit easing, I can confirm that subject to the final EU state aid approval, which we expect to get in the next week, we will have the scheme up and running before the Budget.”